Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
(FORMERLY BCT.TELUS COMMUNICATIONS INC.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A summary of the book values of the assets and liabilities at the date of the merger is as follows:
BC TELECOM
(millions)
TELUS
Assets:
Current assets ............................................... $ 476.3 $ 497.5
Property, plant and equipment, net ................................ 3,156.9 2,713.8
Other assets ................................................. 388.4 604.5
Less:
4,021.6 3,815.8
Current liabilities ............................................. 1,017.8 861.6
Long-term debt .............................................. 883.7 558.5
Other liabilities .............................................. 77.0 10.4
Non-controlling interest ........................................ 9.7 —
Net assets .................................................. $2,033.4 $2,385.3
The operating results of BC TELECOM and TELUS for the month ended January 31, 1999 are as follows:
BC TELECOM TELUS
(millions)
Revenue ..................................................... $261.8 $215.3
Income before interest and taxes ................................... 60.6 35.2
Net income .................................................. 29.5 15.3
A charge of $466.3 million was recorded in the first quarter of 1999 for the expected costs in 1999 and 2000
to complete merger-related restructuring activities. More than half of this charge is for management
termination costs and the costs of voluntary early retirement programs. The business restructuring also
included the rationalization of real estate, the impairment of assets in two start-up businesses that were
reassessed in relation to national growth plans and consulting costs from merger integration activities.
Third party costs to effect the merger arrangement were charged to retained earnings in the first quarter of
1999. These costs totaled $51.9 million and included financial advisor fees, regulatory filing fees, legal and
accounting fees, and printing and mailing costs.
The financial statements of BC TELECOM and TELUS have been adjusted to put the accounting methods
used by the two companies on a common basis. As part of this process, TELUS Mobility Cellular Inc. has
changed its accounting policies relating to the recognition of customer acquisition costs and access
revenues. This change was applied retroactively and resulted in a prior period adjustment charging retained
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